It has become a Christmas tradition: we offer a gift voucher so as not to displease or because we don’t know what to offer. However, a gift card is money in the bank. You must pay attention.
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Before the pandemic, Canada’s gift card market was valued at $18 billion and growing at more than 30% annually. More than half of Quebecers give them away for the holidays, or 2% of all gifts, according to the Retail Council of Canada.
Retailers love them: 40% of users have never entered an exhibiting retailer. And 61% of Canadians would spend more than the amount on the card when using it.
However, every fifth gift voucher would be slumbering in a drawer. Inflation therefore reduces their value.
risks
Just like cash or gold bars, gift cards up to $200 are covered by your home insurance against theft. But don’t forget that you have to reckon with a deductible for every insured event…
On the other hand, if you have a gift certificate from an insolvent retailer, you become an ordinary creditor. In the case of large amounts, contact the insolvency administrator. In these circumstances, it is better to purchase a gift card using your credit card and request a chargeback. So if you receive a gift voucher for Christmas, use it as soon as possible…
Otherwise, you can sell it online using CardSwap or GiftCash. Depending on the brand, you get between 60% and 90% of the value back.
There you enter the name of the card and the points balance (minimum $25) and the platform will make you an offer. You mail the card and receive a check within a few days. GiftCash even accepts digital cards and redeems them within hours.
Tips:
- There are numerous gift card scams on Kijiji or Marketplace.
- If you lose a gift voucher, you have no right of recourse, since the retailer is not obliged to refund it under the Consumer Protection Act. If, on the other hand, it appears in a register, he has the right to demand replacement costs.
- A gift card has no expiration date (except for mobile cards) and its monetary value must be established over time, with some exceptions. For example, for a card designed specifically for a good or service (a massage or a dinner at a restaurant), the merchant may set the price to increase after a certain date. After that you have to pay the difference. But the initial value and these conditions must be indicated on the card.
- If the good or service specified on the gift card is no longer offered, the merchant must offer an equivalent good or service or issue a cash refund. If your card balance is less than $5, the law requires it to be paid to you in cash.
- Read here.
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